Yanbu National Petrochemical Company Site Safety Procedures Manual

Yanbu Petrochemical Complex U & O Project July 2005

Fluor Arabia Limited Contract A2IT Page 1 of 3

11. DAILY SAFETY MONITORING (SAFETY DISCREPANCY LOGBOOK)

This procedure describes the method of conducting daily safety-monitoring activities, responsibilities,
and reporting requirements.

A. GENERAL

1) Accident prevention is a primary responsibility of all levels of supervision and management.

Each supervisor/manager should maximize initiative of safety-related communication training,
motivation, and monitoring techniques.

2) The Safety Manager is responsible for ensuring that all safety-monitoring activities are
conducted on a regular basis.

B. SAFETY MONITORING

1) Each work area shall have a sign board of 500 mm x 400 mm on a stake with the name of the
contractor company, name of area superintendent, responsible field supervisor’s name, discipline
and number of crew members clearly displayed.

2) Each work area per filed supervisor shall have Owner’s Discrepancy Logbook located where it is
easily visible and where it could be easily accessed.

3) The safety supervisor / inspector, will conduct daily field inspections and record all safety
deficiencies and recommended corrections in the Discrepancy Logbook in the area.

4) Owner and all members of management will also document all safety deficiencies and
recommended corrections in the Discrepancy Logbook when visiting the area.

5) The area supervisor shall review the logbook regularly and correct all safety deficiencies
immediately, document the corrective actions taken and sign each line item off in the logbook.

6) Owner, safety and construction management will review the Discrepancy Logbooks regularly
and will take the necessary disciplinary actions should safety deficiencies not be corrected
within a reasonable time.

7) The Discrepancy Logbooks will also be reviewed during the Weekly Area Safety Assessments.

8) Areas where imminent dangers are found shall stop all work until the situation has been
corrected. Areas where imminent danger situations exist, which can not be corrected
immediately, the employees will be removed from the work area. Only employees
authorized to correct the deficiencies will be allowed in the area. Work will not resume
until the Construction Manager and Safety Manager is satisfied the corrections have
been made and the area declared safe to continue the normal work.

H:\000_General\Share\501 - Construction\SITE SAFETY PROCEDURES\11-Daily-Monitoring-Discrepancy.doc GENERAL SITE CONDITIONS AND SAFETY PROCEDURES
 Yanbu National Petrochemical Company Site Safety Procedures Manual
Yanbu Petrochemical Complex U & O Project July 2005
Fluor Arabia Limited Contract A2IT Page 2 of 3

C. IMMINENT DANGER
Imminent Danger is defined as a violation that as a result of created a substantial probability
that death, serious physical harm, major equipment damage, or work stoppage could have
resulted.

The following are examples of an Imminent Danger Violation and should not be considered a
complete listing:

a) Material or tools stored or left laying on elevated positions in such a manner that they
could be dislodged, fall and strike someone below, i.e., material stacked next to and
higher than the toe board on a scaffold. A spud wrench left lying on an I-beam.

b) Work being performed without a valid permit.

c) Failure to use Permit Specified Personal Protective Equipment i.e., respiratory

equipment, chemical resistant suite, etc. in an environment known to or that has the
potential to contain hazardous contaminates.

d) Failures to use the correct fall protection when working from an unprotected elevation
of 1.8 meters or higher. (100% fall protection policy applies).

e) Failure to provide adequate barriers and warning signs after removing handrails,
grating, hole covers.

f) Employee working in an excavation 1.2 meter deep or greater that has not been
properly shored or sloped or a trench box was not provided.

g) Employee working on a Red tagged/unsafe scaffold or working off scaffolds without a

current inspection.

h) Working on equipment or systems that have the potential to be energized with out
initiating a proper lock out.

i) Working on energized electrical circuits with out proper approval or with out proper
protective equipment.

j) Using lifting equipment in excess of its rated capacity or lifting equipment without
certification or current inspection.

k) Refueling gasoline powered portable equipment with out allowing for a sufficient
cooling time or without grounding.

l) Intentionally altering or disabling a hand or power tool by removing a protective guard

or safety mechanism.

m) Knowingly operating equipment with faulty or defective safety devices or operating

equipment in a dangerous manner.

H:\000_General\Share\501 - Construction\SITE SAFETY PROCEDURES\11-Daily-Monitoring-Discrepancy.doc GENERAL SITE CONDITIONS AND SAFETY PROCEDURES
 Yanbu National Petrochemical Company Site Safety Procedures Manual
Yanbu Petrochemical Complex U & O Project July 2005
Fluor Arabia Limited Contract A2IT Page 3 of 3

n) Operating gas welding sets without the flash back arrestors and check valves installed
on both hoses.

o) Using pneumatic hoses under pressure without the proper clamps and/or without
whiplash arrestors across the couplings.

D. STOP WORK ORDER

In all situations where imminent dangers exist which can not be corrected immediately and the
employees need to be removed from the area until the work area has been made safe for the
work to continue, a Stop Work Order shall be issued by the Safety Manager or Safety
Representative. Owner will also issue a Stop Work Order if necessary.

In all situations where the work has been stopped, only authorized and trained employees will
be allowed to work in the area to correct the safety deficiencies in order to make the area safe
for the work to continue.

The conditions of the Stop Work Order must be met and verified and signed off before the work
will be allowed to continue.

ATTACHMENTS:

ATTACHMENT A: SAFETY DISCREPANCY LOGBOOK

ATTACHMENT B: STOP WORK ORDER

H:\000_General\Share\501 - Construction\SITE SAFETY PROCEDURES\11-Daily-Monitoring-Discrepancy.doc GENERAL SITE CONDITIONS AND SAFETY PROCEDURES